It lifted guidance from an earlier reduced 1.63-1.73 million ounces to 1.68-1.73Moz but maintained its previously revised all-in sustaining costs forecast at $1,025-$1,075/oz. 

The company announced a net income of US$105.3 million for the June quarter, or 44c per share, up from $27.8 million a year earlier.

Cash provided by operating activities rose from $126.3 million to $162.6 million.

Agnico said the increases were mainly due to higher average realised gold prices, and lower exploration and general and administrative expenses, partially offset by lower gold sales volume, and temporary suspension costs in relation to COVID-19.

CEO Sean Boyd noted Agnico had seven of its eight mines on care and maintenance at one point during the quarter but had finished the period strongly.

"With the ramp-up of operations now complete and with July production expected to exceed 160,000 ounces of gold, the company is well-positioned to have a strong second half with gold production expected to average 480,000 to 500,000 ounces per quarter with declining unit costs," he said.

"As a result, we anticipate generating significant free cash flow in the second half of 2020."

Agnico said highlighted its potential for organic growth and said its exploration focus remained on pipeline projects, near mine opportunities and mineral reserve and mineral resource replacement.

The company declared a quarterly cash dividend of 20c per share.

It had cash and equivalents and short-term investments of $336.4 million at June 30.

After quarter-end, Agnico said it had repaid the remaining $250 million outstanding on its unsecured revolving bank credit facility and now had available liquidity under this facility of $1.2 billion, not including the uncommitted $300 million accordion feature.

Its shares (TSX: AEM) hit a one-year high this week of C$101.17.

They closed down 2.7% yesterday to $97.71, valuing it at $23.7 billion (US$17.8 billion).